What is a Mortgage Reinstatement Period?

If you're a homeowner who is behind on mortgage payments, you need to know what the mortgage reinstatement period is. This is the time when the lender begins to file all the necessary legal paperwork to start the foreclosure proceedings on a home. It is also the limited court-granted period during which the borrower has an opportunity to stop all proceedings and remain in the home under the current mortgage if he or she makes the now-delinquent mortgage payments and covers any legal fees that have resulted from starting the foreclosure process. This period is generally around 30 to 45 days; however, it can vary considerably from state to state, so it is important to know what the mortgage reinstatement period is for your state.

As the legal fees and interest will continue to add up each day, the sooner a borrower can pay these fees, the better. The mortgage reinstatement period is nothing more than a last chance for the borrower to bring his or her loan up to date. The lender has to accept payments during this time. If no payments are made, then the foreclosure proceedings may continue.

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